UAE halts trade and financial transactions with Iran until further notice

Dubai, UAE - The United Arab Emirates (UAE) accused Iran of launching two ballistic missiles at maritime traffic in the Gulf on Tuesday, a claim Tehran swiftly denied. According to the UAE's ministry, the first missile fell outside the country's territorial waters, while the second missile landed within its territorial waters. The ministry also confirmed that these projectiles were targeted at maritime navigation and subsequently fell into the sea.

In response to the allegation, Iran's foreign ministry spokesman, Esmaeil Baqaei, vehemently rejected the UAE's claims, deeming them detrimental to regional trust and security efforts. However, Iran has threatened to keep the Strait of Hormuz closed until a peace agreement with the United States is reached.

Following the missile threat, the UAE imposed an immediate suspension of all trade and financial transactions with Iran, effective late Tuesday evening. The UAE's interior ministry had issued an earlier phone alert advising residents to seek safety in the nearest secure building in case of a missile threat. This alert was lifted shortly after, following the confirmation that no missiles had entered UAE territory.

The threat came as a result of escalating regional tensions. Earlier, the UAE had suspended all dealings with Iran until further notice. The missile alert was the first of its kind since a false alarm in June and another alert in July, both of which did not result in any missile landing within UAE territory. Prior to that, the last missile alert was issued in early May.

In the broader context of the Middle East conflict, which erupted on February 28, the UAE bore the brunt of Iran's aggression, with nearly 3,000 missiles and drones targeted at the country, more than any other region in the Middle East. Prior to a memorandum of understanding between the two nations, which ultimately collapsed in June, the UAE reported no missile attacks. Since then, other Gulf states have also reported similar incidents.